Policy of Restraint on Expenditures

August 1, 1967 REVENUE MEMORANDUM ORDER NO. 54-67 SUBJECT : Policy of Restraint on Expenditures The present budgetary limitations under which the Bureau of Internal Revenue is operating and the need to implement the BIR Salary Law (RA 4900) as soon as possible demands that the bureau embark on an austerity program. Such restraint on expenditures does not, however, contemplate the cutting or withholding of essential services and necessary facilities to collect taxes due the government and to effect good BIR-taxpayer relationship. cdta To carry this out, the following steps shall be effected and complied with by all concerned: 1. The implementation of GAO General Circular No. 88-A as implemented by Revenue Memorandum Order No. 2-65 shall be suspended. However, as it is imperative for many tax administration activities to have revenue personnel travel in order to carry out effectively the objectives of the bureau per diems, in addition to actual traveling expenses, shall be given, but under the rates prescribed by Commonwealth Act No. 246. 2. Supplies and materials shall be procured only insofar as they are essentially needed. 3. The purchase of cigarette stamps, documentary stamps, and other revenue producing materials shall be limited to the actual needs during the current fiscal year. 4. No increase in office rental shall be approved for the current fiscal year. 5. Office improvements, whether in the National Office or in the field office shall be limited only to bare essentials. Requests, therefore, should be submitted to the Deputy Commissioner thru the Revenue Operations Head (Management Planning) prior to any actual repair work or improvements. The latter officials shall determine the necessity for such improvement and shall be guided by the policy that, as much as possible, no improvement shall be undertaken during the current fiscal year. 6. Only essential equipment shall be purchased. The Revenue Operations Head (Management Planning and Administrative Services) shall jointly program what equipment are essentially important to promote the tax administration program of the bureau. 7. All salary savings realized shall be exclusively used for the implementation of salary increases as provided under the BIR Salary Law. Payments of commutation of leaves of absence including terminal leaves shall not be taken out of savings but from the amount appropriated for the position of the personnel concerned and paid on a month to month basis. 8. The reimbursement of traveling expenses which are claimed later than the time provided for under Revenue Memorandum Order No. 7-66, dated January 19, 1966, shall not be entertained. 9. All papers relating to disbursements from the appropriations of the bureau shall be passed upon by the Revenue Operations Head (Management Planning) prior to final approval to determine the real need for such expenditures. 10. Expenses incurred under the direction of any official of the bureau without previous approval as prescribed above shall be considered personal obligations of whoever authorized the same and that the bureau will not be made answerable for such expenditure. 11. New positions provided for in the current appropriations act shall not be filled up earlier than January 1, 1968. 12. Assignment of revenue attaches to present vacancies shall not be made earlier than January 1, 1968. cdll Strict compliance herewith is enjoined. MISAEL P. VERA Commissioner of Internal Revenue APPROVED: EDUARDO Z. ROMUALDEZ Secretary of Finance